The University of Manitoba Pension Plan (1993) provides eligible employees of the University of Manitoba with retirement, termination, and death benefits. The Pension Plan is a hybrid plan – meaning you earn both a defined benefit (DB) Formula pension and a defined contribution (DC) Plan annuity pension. Your DB pension shelters you from the risk of market downturns and gives you the security of a clearly defined, formula-based pension; your DC Plan annuity pension offers opportunities to grow your savings in strong investment markets.
When you join the Plan, contribution accounts are set-up in your name for plan contributions (yours and the University’s) and net investment earnings (after investment management fees and other expenses have been deducted). At the same time, you begin to earn a defined benefit pension.
If you leave the University prior to meeting the eligibility requirements for retirement, settlement of your account will be based on your assets in the fund and provisions of the Pension Plan document.
The Plan is registered with both the Manitoba Pension Commission and the Canada Revenue Agency (CRA). As registered arrangements, the Plan must comply with the strict provisions outlined in both the Manitoba Pension Benefits Act (PBA) and the Canadian Income Tax Act.
Full-time - as an eligible full-time employee, you may join the Plan on your appointment date, or any date before your required mandatory participation date. You are required to join the Plan within 30 days following the completion of two consecutive years of employment with the University.
Part-time – as an eligible part-time, sessional or casual employee, you may join the Plan on your appointment date, or any date before your required mandatory participation date. You are required to join the Plan within 30 days following two consecutive years of employment with the University in which your earnings exceed 35% of the Year’s Maximum Pensionable Earnings (YMPE).
For new employees, to join the Pension Plan please complete the Application for Membership form, available to print from our Forms section of this site. The completed form must be returned to the Pension Office.
For returning employees, please call the Pension Office to determine your pension plan status.
For all employees who have not joined the Plan but who have reached the mandatory participation rules, you will be sent the required forms from the Pension Office.
You may waive the right to participate in The University of Manitoba Pension Plan (1993) as of the initial participation date. Please complete the Participation Waiver form, available to print from our Forms section of this site. Subsequent optional participation dates, prior to the compulsory participation date, are available at your discretion. Please return the form to the Pension Office.
Compulsory participation date is within 30 days following 2 years of full-time continuous employment, or within 30 days following 2 years of employment if your annual earnings are equal to or greater than 35% of the Canada Pension Plan Yearly Maximum Pensionable Earnings for each year.
Joining the Plan
Membership will be effective on the first day of the pay cycle next following receipt by the Pension Office of the Application for Membership form. If you do not wish to join the Plan prior to your mandatory date, please complete the Pension Waiver form. Note – Please do not complete both the Application for Membership form and the Pension Waiver form – only complete one form.
You and the University share the cost of your pension. When you join the Plan, two separate accounts are opened in your name; the Employee Contribution Account for your required contributions, plus investment income and a University Contribution Account for University contribution made on your behalf, plus investment income. You may also have a Restricted Contribution Account, or a Non-Restricted Contribution account. These accounts are contributions transferred in from another plan if this is applicable in your situation.
As a member of the Plan you make an annual contribution to your Employee Contribution Account equal to:
9% of your Basic Salary up to the Year’s Basic Exemption (YBE) ($3,500)
7.2% of your Basic Salary between the YBE and the Year’s Maximum Pensionable Earnings (YMPE) ($58,700)
9% of your Basic Salary above the YMPE:
The University of Manitoba matches the employee contribution. Each member will have an Employee Contribution Account and a University Contribution Account.
Canada Revenue Agency (CRA) determines the maximum annual contribution that can be made to the Pension Plan. The maximum limit is $27,830 for 2020 in accordance with the limits defined under the Plan.
To estimate your required pension contributions, please link to: Pension Contribution Calculator
As outlined in the introduction, your Plan is a hybrid plan: it combines the security of a defined benefit guarantee (Formula pension) with the prospect of accumulating enhanced benefits under a defined contribution (Plan annuity) arrangement. To ensure that you receive the highest possible benefit, your benefit is calculated at retirement using two different methods.
Please note, you must be at least age 55, with 5 or more years of service to get your "formula" pension. If you have fewer than 5 years of service when you retire, your will not qualify for a Defined Benefit pension, you will receive the total value of your pension.
The Formula pension is a minimum benefit guarantee based on a pre-determined Plan formula. Your Formula Pension at your normal retirement date is:
2% of the Highest Average Annual Basic Salary for each year of credited service
less an offset of .7% of your highest average annual basic salary under the YMPE in the year you retire multiplied by credited service after January 1, 1966 to a maximum of 35 years.
Your Formula pension is subject to the Plan’s maximum pension.
The Plan annuity is the benefit that can be provided based on the total value of your contribution accounts, your age at retirement and a Plan Annuity factor, which converts your DC pension into a retirement income stream.
The benefits resulting from each method are compared and you receive the greater of the two benefits.
Form of Pension
The normal form of payment for the Formula pension and the Plan Annuity pension is a Life 60 months certain.
This type of pension payment provides you with lifetime income. However, should your death occur before 60 payments have been made, the monthly payments will continue to your beneficiary until a total of 60 payments have been made to you or your beneficiary.
If you have a spouse when you retire, you must elect as a minimum a Joint and 60% Survivor form of pension, unless your spouse waives this requirement. Under this form of annuity payment, pension income is received throughout the lifetime of both spouses. Providing a Joint and Survivor pension means that in most instances your pension will be reduced when adding a survivor benefit.
Excess Interest Increases
At retirement, if a member elects to have a monthly pension payment from the Plan the member’s total account used to determine the Plan pension and any pension guarantee funding required, if applicable is transferred to the Pensioner Account. As part of the valuation, the actuary will provide a review of the Pensioner Account’s assets versus the liabilities for all pensioners. If the actuary determines that the Account’s assets are sufficient to cover a full or partial increase, then increases in pension will be provided at the next April 1. The actuary advised that due to the continuing shortfall in the Pensioner Account, no increases has been provided since 2001.
Retirement Payment Options
The Plan offers you several options for your retirement benefits. You can elect:
If the value of your pension meets the definition of a small pension, you are required to transfer your pension out of the Plan.
When you retire, the Pension Office will provide you with detailed information about your options and making your election.
Retiring Early – You can retire as early as the first day of the month following your 55th birthday. However, your Formula pension will be reduced by ¼% for each month (3% for each year) you retire before age 65.
Retiring Later – You can continue working and delay your retirement beyond age 65. However, your plan contributions must cease no later than December 31 of the year you attain age 69. At this time you can either elect to commence your monthly pension, transfer your retirement benefit out of the fund or defer settlement. If you defer settlement you must either begin your pension payments no later than December 31, of the year you turn age 71 or transfer the value of your pension out of the Plan. Postponed retirement benefits include a test to ensure the Formula pension payable at your postponed retirement date isn’t less than the actuarial equivalent of the Formula pension that was payable at your “normal” retirement date.
If you retire with fewer than five years of employment with the University, you will receive the total value of your contribution accounts and will not be eligible for the supplementary pension. This money must be transferred out of the Plan.
For more details regarding the calculation of your retirement benefit, please link to the booklet: Pension Plan Benefits on Retirement.
To help you estimate your Formula pension, please link to: FORMULA PENSION CALCULATOR and follow the instructions.
To view the Sample Plan Annuity Table, please link to: Sample Plan Annuity Table.
If you are considering retirement within the next 5 years and would like an estimate of your pension, please complete and submit the Application for Pension Estimate form.
Selecting a Retirement Date
Support staff members may use their vacation entitlement to extend the date of retirement, subject to certain limitations. Banked overtime and banked regular time will be paid as a non-pensionable lump sum payment, subject to income tax deductions, on the staff member's final pay period. The VIP advance repayment, if applicable, will also be collected from your final pay. To review the Support Staff Retirements Policy and Procedure before finalizing your retirement date, please link to: http://umanitoba.ca/admin/governance/governing_documents/staff/884.html (Support Staff Retirements)
All employees are encouraged to review the provisions of their collective agreements and/or University policies regarding retirement.
If you Leave the University prior to age 55
Your benefit in the Plan is vested immediately. If you leave the University, you will receive the total value of your contribution accounts, no matter how long you belonged to the Plan.
Your benefit is locked-in except for certain conditions outlined below under Non-locked in benefits. Locked-in benefits means your pension benefit continues to be subject to pension legislation requirements for pension sharing, survivor and death benefits, and may only be used to provide retirement income (i.e. you cannot get a cash refund).
You must transfer the total value of your accounts to one of the following:
How to proceed if you are terminating employment from the University
What happens if I stop working but I have not resigned or terminated employment?
Your pension is a family asset. If you or your spouse or common-law partner ends your relationship, the pension you built during your relationship will be taken into account when your family assets are divided. The Pension Benefits Act (PBA) states that the pension benefits must be divided equally, if there is:
If you and your spouse or common-law partner agrees, you may opt out of the mandatory credit splitting. To opt out, each person must receive independent legal advice and a statement from their pension plan administrator showing the value of the pension credit subject to the credit splitting. Both parties must enter into a written agreement with each other confirming that the pension credits will not be divided. The value of the pension credit can only be prepared by the Pension Office and is required for the opt-out provisions to be legal.
Splitting the Difference
If both parties are members of pension plans, they may agree in writing to divide the difference in values between the two pensions equally, rather than dividing both pensions on a 50/50 basis. This provision is available to those who separated on or after June 24, 1992 – or those who had separated earlier, but had not finalized the division of pension credits.
More information can be found on the Pension Commission website: http://www.gov.mb.ca/labour/pension/faq
If your marriage or common-law relationship has ended, please contact the Pension Office. The value of your pension accrued while participating in the Plan can only be determined by the Pension Office. The sharing of pension credits applies to both the pension being earned by active Plan members and pensions payable to pensioners.
If a common-law relationship occurred immediately prior to marriage, the period begins with the date the common-law relationship began. For married persons who began living separate and apart before June 30, 2004, the pension credits subject to division are those earned from the date of marriage.
How to Proceed
If your marriage or common-law relationship has ended, please contact the Pension Office.
If you become disabled and are receiving benefits from the University’s long-term disability plan (LTD), you will continue to be a member of the University of Manitoba Pension Plan (1993). While you are receiving LTD benefits, the University will contribute 9% of your insured basic salary (as defined in the LTD plan) to your contributions accounts, as well as the matching contributions.
Leaves of Absence
If you are on an approved leave of absence without pay or with reduced pay, pension contributions may continue subject to the University policies and maximums subject to the Income Tax Act. If pension contributions are maintained (both yours and the University's), you must participate in the Plan as if you would have been working in your regular position with regular pay, provided that you do not accrue benefits under a registered pension plan or a deferred profit-sharing plan of another employer.
In the Event of Your Death
If you die before retirement as an active plan member, (or as an inactive member on an approved leave), your survivor(s) will receive the total value of your pension. If you have a spouse, Manitoba law requires your spouse to be your beneficiary, unless he or she has waived the right to the pre-retirement death benefit.
Designating Your Beneficiary
You may designate anyone to be your beneficiary. However, if you have a spouse or common-law partner at your date of death, pension legislation requires the pre-retirement death benefit be paid to your spouse or common-law partner, regardless of the beneficiary designation, unless:
i. you are living separate and apart from your spouse or common-law partner by reason of relationship breakdown, or
ii. if your spouse or common-law partner has waived the right to the pre-retirement death benefit by completing Manitoba’s Waiver of Survivor Death Benefit (Form 2). In this case, legislation does not allow you to name your spouse or common-law partner as your beneficiary. Please see the link: https://www.gov.mb.ca/labour/pension/pdf/form2_deathbenefitwaiver.pdf or call the Pension Office.
Please note that if you wish to change your beneficiary (e.g., in the event of a breakdown of your declared spouse/common-law relationship), you will have to do so by means of a Designation of New Beneficiary form available on this website.
Benefits cannot be paid to beneficiaries who are minors (under the age of 18) or who are unable to act on his/her behalf. Trustee Nomination forms are available from the Pension Office.
If you do not have a spouse/common-law partner at your date of death, the pre-retirement death benefit will be paid according to your beneficiary designation. All beneficiary designations are revocable.
Non-locked in Benefits
There are a limited number of circumstances in which a person may be allowed to withdraw locked-in funds as a lump sum. These include:
Commutation of Small Pensions
In the event that the locked-in part of the sum of the Employee Contribution Account and the University Contribution Account is less than 20% of the YMPE in the year of termination, the Member shall receive a lump sum payment of the value of the Contribution Accounts applicable to such benefit either in cash or by transfer to a Registered Retirement Savings Plan.
Shortened Life Expectancy
The PBA permits a pension plan, to provide for withdrawal of locked-in funds in a lump sum upon certification by a medical practitioner of a considerably shortened life expectancy, which cannot exceed two years.
Non-residents of Canada
If you are no longer a resident of Canada, the PBA permits former plan members to withdraw pension benefit credits in a pension plan in a lump sum (subject to certain requirements).
In all other cases, including cases of financial hardship, locked-in funds cannot be withdrawn as a lump sum.
The forms may be completed on-line; however they must be downloaded for signature. The Pension Office requires an inked signature. Please complete the forms and send them to the Pension Office.
Pension Plan Amendments
The Board of Governors at its April 18, 2017 meeting approved the amendment to merge the University of Manitoba Pension Plan (1970) with the University of Manitoba Pension Plan (1993) effective January 1, 2017.
Retirement Planning Workshops
Retirement Planning workshops are scheduled periodically during the year.
Please note, the 2020 Spring Retirement Planning Sessions have been cancelled.
Merger of the 1970 Pension Plan with the 1993 Pension Plan
The University of Manitoba Pension Plan (1970) was merged with the University of Manitoba Pension Plan (1993) effective January 1, 2017.
The Merger was undertaken primarily to simplify the administration and management of the two Plans. All current members of the 1970 Plan who are active employees are also active members of the 1993 Plan.
The 1993 Plan was established effective January 1, 1993 and the assets and liabilities associated with the members of that plan - the faculty and some support staff - were transferred to the 1993 Plan from the 1970 Plan. Effective January 1, 1994, most of the balance of the membership in the 1970 Plan was also transferred to the 1993 Plan. Over a period of years, various employee groups had their past service benefits (and corresponding assets) transferred from the 1970 Plan to the 1993 Plan.
The merger included deferred members who have terminated from the 1970 Plan and have not yet transferred their benefits out of the 1970 Plan. These members were employed by related employers: The University Medical Group, the University of Manitoba Students Union (UMSU) and the University of St. Boniface. Deferred member’s pension benefit is the total value of their contribution accounts.
Annual Member Statements
You will receive your personal pension statement each year postmarked by June 30. Please ensure your address is up-to-date in JUMP to avoid delays.
2020 Update on Pension Plan Maximums
Each year there are various maximums that are used in calculating your pension benefits. The following table lists these maximums:
Pension Committee Membership
The Committee is comprised of the following persons:
i. Two voting members to represent all active Plan members ("Active Voting Representative");
ii. One voting member to represent all non-active Plan members and other beneficiaries
("Non-Active Voting Representative");
The Board shall appoint:
i. a number of individuals equal to the total number of individuals elected or appointed as Active and Non-Active Voting Representatives;
ii. at least one additional individual, to be chosen at the Board's discretion; and
iii. those three individuals holding the offices of:
- Vice-President (Administration)
- Associate Vice-President, Human Resources; and
all of whom shall be voting members of the Committee.
Pension Committee Members
At December 31, 2019, the Pension Committee members were:
Dr. W. George Baldwin3
Retired Professor, Chemistry
(Elected from non-active members/retirees)
Information technology specialist
(Elected from active members)
Tom Hay (Vice-Chair)1&2
(Appointed by position)
Darlene Smith 1&2
Associate Vice-President (Human Resources)
(Appointed by position)
Jeff Leclerc 2&3
(Appointed by the Board)
Janice Martin (Secretary)1
Director, Audit Services
(Appointed by the Board)
Director, Treasury Services
(Appointed by the Board)
Dr. Cameron Morrill1
Associate professor, Accounting and Finance
(Elected from active members)
Dr. David Stangeland3
Professor, Accounting and Finance
(Appointed by the Board)
Lynn Zapshala-Kelln (Chair)3
(Appointed by position)
External Investment Subcommittee members:
(Appointed by the Pension Committee)
1 also Audit Subcommittee member
2 also Governance Subcommittee member
3 also Investment Subcommittee member
Role of the Committee
The Committee acts as both Pension Committee and as “Administrator”, as described in the PBA and regulations. The Committee has the rights, powers, and obligations necessary for the Committee to administer the Plan in accordance with the Act and regulations.
The overall purpose of the Committee include:
There are three subcommittees assigned to focus on specific administrative areas – Investment, Audit and Governance. The subcommittees report to the Pension Committee on their activities to ensure the Pension Committee works together in administering the governance and operational duties of your Plan.
CURRENT YEAR INVESTMENT PERFORMANCE
Net Year-to-Date Return to March 31, 2020: -8.78%.
An election of Active Representatives (2 members) and non-Active Representative (one member) is conducted every three years. The last election was held May 2017 and the next election is scheduled for May 2020.
Link to: FAQs (1993 Plan)